Three big tech names release their next earnings report tonight after closing bell. In general, expectations are running pretty low for Apple Inc. (NASDAQ:AAPL) and Zynga Inc (NASDAQ:ZNGA) but rather high for Facebook Inc (NASDAQ:FB). Shares of all three companies slumped today ahead of their reports. Facebook and Zynga both fell as much as 2%, while Apple declined 1%.
What to expect from Apple
Consensus estimates for Apple Inc. (NASDAQ:AAPL) indicate that Wall Street is looking for earnings of $10.18 per share on revenue of $43.53 billion for the company’s second fiscal quarter. Analysts have warned that the company’s results may not be great for a number of reasons. Some say expectations of a larger iPhone 6 could have held back some buyers from upgrading. Others warn that the international launch of the iPhone 5S may have boosted the December quarter’s unit volumes but will pull down volumes for the March quarter.
Analysts are also warning about the June quarter, which also tends to be problematic for Apple Inc. (NASDAQ:AAPL) as consumers dial down their iPhone and iPad purchases even further ahead of the fall launches. Most are looking further ahead to the second half of the calendar year, assuring investors that Apple has plenty of new products coming out which will give its top and bottom lines a boost.
What to expect from Zynga
Wall Street is projecting losses of 1 cent per share on revenue of $147.52 million for Zynga Inc (NASDAQ:ZNGA). Investors and analysts want to see improvements in margins and user growth. The game maker has been battling declining revenues, users and bookings, and many believe those numbers will continue to fall, not counting impacts from Zynga’s acquisition of NaturalMotion.
Zynga Inc (NASDAQ:ZNGA) unveiled a new Farmville game for iOS and Android users earlier this month. The game maker must make a successful transition to mobile gaming, and the company is hoping this will be the first big step in that process.
What to expect from Facebook
Analysts are expecting Facebook Inc (NASDAQ:FB) to post first quarter earnings of 24 cents per share on $2.34 billion in revenue. Investors will look for continued growth in mobile advertising and benefits from the social network’s video ads.
The FTC approved Facebook Inc (NASDAQ:FB)’s bid to buy virtual reality headset maker Oculus VR. Meanwhile the social network’s other acquisition, WhatsApp, revealed that it hit 500 million active users, which is a major milestone and seen as a positive for Facebook as the social network looks for more streams of revenue.